Personal bankruptcy in Russia is a court procedure, not an automatic cancellation of loans. An arbitrazh court and a financial manager review debts, property, transactions and the debtor’s good faith before the court decides whether remaining obligations may be discharged.
Court or MFC bankruptcy?
Court bankruptcy involves an arbitrazh court and a financial manager. The free MFC procedure is available only when the special conditions of Article 223.2 are met and lasts six months if not terminated. Only correctly listed claims are discharged.
Russian personal bankruptcy step by step
1. Risk review
Map debts, income, assets, family property and recent transactions.
2. Documents
Collect creditor, account, income, property and transaction evidence.
3. Court filing
File the petition and identify a self-regulatory organisation of managers.
4. First hearing
The court checks insolvency, evidence and procedure funding.
5. Procedure
Debt restructuring or sale of assets is introduced.
6. Review
Claims, assets and challengeable transactions are examined.
7. Completion
The court reviews the manager’s report and decides on discharge.
Not automatic
Concealment or bad faith may prevent discharge.
Documents and filing
Article 213.4 of Federal Law No. 127-FZ requires evidence of debt and inability to pay, creditor and debtor lists, an asset inventory and other case-specific documents. Bank accounts, income, marital status and significant dealings in real estate, vehicles, securities and company interests may be relevant.
Costs
There is no reliable universal package price. Costs depend on the number of procedures, publications, correspondence, valuation, auctions and disputes.
- the state fee for a citizen’s filing is currently RUB 300;
- the financial manager’s fixed remuneration is RUB 25,000 for each procedure;
- the law may also provide a 7% percentage remuneration;
- publication and actual case expenses vary.
Property and consequences
Property enters the bankruptcy estate unless protected by law. The protection of a sole home has exceptions: mortgaged housing normally remains collateral, and immunity may not be absolute for clearly excessive housing. Marital property requires a separate analysis.
- for five years, new credit or loan agreements require disclosure of the bankruptcy;
- temporary restrictions apply to management positions;
- repeat bankruptcy and discharge are restricted by Article 213.30;
- maintenance, personal-injury claims and other statutory exceptions remain payable.
Frequently asked questions
Must a debt reach a fixed amount before filing?
A citizen’s right to file depends not only on the amount but also on insolvency or insufficient assets. The statutory duty to file has separate conditions.
Are all loans discharged?
No. Some claims survive, and dishonest conduct may result in refusal of discharge.
How long does the case take?
There is no fixed duration. Assets, auctions, transaction challenges, creditor claims and court disputes affect timing.
Related: personal bankruptcy service, financial manager checks and non-dischargeable debts.
Need to assess bankruptcy in Russia?
At a paid initial consultation, we review debts, assets, transactions and documents and compare the available procedures.
Book an initial consultation →General information only. Conclusions depend on the current law and case facts.